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Twitter Shares Skyrocket 15%
- Twitter shares skyrocket 15% following the recent sales report.
- Sky”s the limit for now for this social media platform.
The price of Twitter shares has soared more than 15% at the opening, up to $38.50 per share. Investors are seeing for the first time how their sales have exceeded the psychological threshold of $1 billion in a single quarter.
Between the months of October and December, the total revenues for the well-known microblogging social network reached 1,010 million dollars. Revenue is above the USD $992 million expected by the market consensus and 11.1% more than in the last three months of 2018.
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Sky”s the limit, at least in the short term…
On the contrary, the company’s net profits contracted 53.3%, to 119 million euros ($0.15 per share). Compared to the 255 million profit ($0.33 / share) gained in the same period of the previous year.
In comparable terms, the adjusted profit per share stood at $0.25 per share. A year ago, this stood at $0.31 per share. It is also below the $0.29 advanced by the market consensus.
The results published by the company offer other reasons for optimism. Investors’ returns today are driven to a value they had run away from in their previous results presentation.
Twitter shares plummeted 20% after the third-quarter results
On October the 24th, the company”s titles experienced their second-worst session as a listed company after seeing a 20.81% drop in a single day. Since then and until the end of the last day’s market, its shares recovered 9.8%.
Among other aspects that have led to today’s rebound, there is a strong increase in the number of daily active users. These can be monetized by the company. Users have already risen to 152 million after registering a growth of 7 million during the last three months of 2019. In comparison, investors expected 2 million.
Similarly, the market has also been pleased that Twitter’s revenue forecasts for the first quarter of 2020 are in line with analyst consensus projections ($875 million). The company estimates a range of between 825 and 885 million dollars.
*OspreyFX would like to state that traders should research extensively before following any information given hereby. Please read our Risk Disclosure for more information.